Fulcrum Metals plc has signed a binding letter of intent to sell its 458-hectare Tully gold project in the Timmins mining district, Ontario.
EXPOSURE
Canadian purchaser Loyalist Exploration Ltd will pay CA$500,000 cash and issue 89,255,000 common shares to Fulcrum on completion of the transaction, representing 19.9% of its issued enlarged share capital.
Fulcrum will also receive a 2% net smelter royalty over Tully with a CA$1 million buy back for 1%.
Future payments to Fulcrum, subject to milestones, will be for CA$100,000 cash and 30 million shares in Loyalist at a price of CA$0.01 per share or cash in lieu.
Loyalist is focused on the Loveland nickel-copper-gold and the Gold Rush gold-silver properties, both located in Timmins.
Fulcrum said that the sale gave it exposure to “multiple highly prospective projects in the Timmins mining district.”
“I am very pleased to announce the signing of the LoI with Loyalist over the highly prospective Tully gold project,” added chief executive officer Ryan Mee.
“This transaction aligns perfectly with our broader strategy to divest exploration assets and focus on the development of our gold tailings projects in Kirkland Lake and the potential commercial opportunities open to us.
“We believe that Tully is a high quality asset that is located in one of the world’s most prolific gold districts, and the terms retain significant exposure for Fulcrum in the potential upside through the shareholding and the milestone and royalty structure.”
Fulcrum acquired Tully in August 2023 and spent approximately £36,000 on the project, which it states has a carrying value of £545,819 as at 30 June 2024.